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DAM's real estate strategy focuses on sustainable growth through diversification across various property sectors, prioritizing stability and long-term returns.
The TD Greystone Real Estate Strategy has become one of Canada's leading open-ended real estate investment vehicles, boasting a gross asset value of over $23 billion and delivering an annualized performance of more than 9% since its inception in 2004. This success is attributed to a disciplined, risk-aware approach rooted in prairie-based pension plans.
TDAM's portfolio management team emphasizes diversification across property types, such as industrial and residential, to maintain stability and drive returns. Luke Schmidt, head of transactions at TDAM, notes that a diversified portfolio can benefit from market rotations, citing the shift from industrial to residential sectors.
The integration of multi-unit residential properties in 2008 has provided stability during inflationary periods, with annual rent adjustments allowing for adaptability. Mark Cooksley, head of development at TDAM, addresses misconceptions about commercial real estate, stating that the office sector is not dead but rather evolving.
TDAM's commitment to sustainability initiatives, such as creating Canada's first net-zero industrial building in Halifax, aims to future-proof investments while ensuring continued growth and stability. This approach prioritizes long-term strategies over short-term gains, positioning TDAM for success in the real estate landscape.
